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DECISION No.68/1998/QD-TTg OF MARCH 27, 1998 ALLOWING THE EXPERIMENTAL ESTABLISHMENT OF STATE ENTERPRISES IN TRAINING AS WELL AS RESEARCH INSTITUTIONS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Law on State Enterprises of April 20, 1995;

In order to associate the training and scientific research with the actual production, to accelerate the prompt application of scientific and technological research results to production and to partly supply resources for training as well as scientific research institutions so as to raise the training and research quality;

At the proposals of the Minister of Education and Training and the Minister of Science, Technology and Environment,

DECIDES:

Article 1.- To allow the ministries, the ministerial-level agencies, the agencies attached to the Government and the People's Committees of the provinces and cities directly under the Central Government to select a number of public universities and colleges (hereafter referred to as training institutions for short), scientific research institutes, scientific and technological centers and State-run scientific research-production unions (hereafter referred to as research institutions for short) under their management, for the experimental establishment of State enterprises therein, to manufacture and trade in the products, which are the fruits of the technological research and application, or the scientific and technological products and services which are closely associated with the functions and professional tasks of such training and/or research institutions.

Article 2.- Besides the commodities and services banned from business, and the commodities and services allowed for business under certain conditions on the domestic market as defined in Decree No.02-CP of January 5, 1995 of the Government, the State enterprises in training and/or research institutions shall not be allowed to be engaged in the following production and/or business fields: mining, electricity distribution, manufacture and circulation of explosives, hotels, restaurants, publishing, air transport, postal and telecommunications services, finance and credit, real estate. Exceptional cases must be permitted by the Prime Minister.

Article 3.- The establishment, reorganization, dissolution and/or bankruptcy of the State enterprises in the training and/or research institutions shall comply with Decree No.50-CP of August 28, 1996 of the Government on the establishment, reorganization, dissolution or bankruptcy of State enterprises and Decree No.38-CP of April 28, 1997 of the Government on the amendments and supplements to a number of Articles of Decree No.50-CP.

The statutory capital of a State enterprise in a training or research institution at the time of its establishment must not be lower than 30% of the legal capital prescribed for the business branch or trade with the highest legal capital level specified in Appendix No.2 attached to Decree No.50-CP. The value of workshops and equipment to be converted by the training or research institution into the enterprise's statutory capital must not exceed 1/3 (one third) of the total value of the workshops and equipment of such training or research institution.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees of the provinces and cities directly under the Central Government shall sign decisions to establish State enterprises in the training and/or research institutions under their respective management after obtaining written consents from the Minister of Planning and Investment on the enterprise establishment plans.

Article 5.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees of the provinces and cities directly under the Central Government shall be entitled to authorize the heads of the training and/or research institutions to manage enterprises therein.

Article 6.- The heads of the training and/or research institutions shall study and submit to the heads of the agencies that decide the establishment of enterprises for approval the statutes on organization and operation of the enterprises as well as the appointment, dismissal, commendation or discipline of directors of enterprises.

The directors of the enterprises shall, after consulting the heads of the training and/or research institutions, study and submit to the heads of the agencies that decide the establishment of the enterprises for approval the appointment, dismissal, commendation or discipline of deputy directors or chief accountants of enterprises.

Article 7.- State enterprises in the training and/or research institutions shall, apart from fulfilling the obligations and enjoying all interests prescribed for the State enterprises by law, be given preferential treatment in being considered for the allocation of land for construction of production and business establishments under the Land Law, preferential conditions for borrowing investment capital, and be eligible for preferential tax rates as provided for by law; they shall at the same time have obligations to take part in supporting the training or research activities of such institutions.

Article 8.- The training and research institutions shall be reimbursed by the State all profit tax amounts already paid by the enterprises under their respective management, which shall be used for the construction of material bases, the procurement of equipment in service of teaching and studying activities as well as for scientific research and technological development according to the approved plans.

Article 9.- Besides teachers, science cadres, workers and employees assigned by the heads of the training or research institutions to perform the production and business tasks, the State enterprises in such training or research institutions shall be entitled to sign labor contracts with other teachers, scientific researchers, workers and employees in such institutions as well as contracts for recruitment of laborers from outside in accordance with the enterprises' demands and current provisions of law.

Article 10.- Teachers, scientific researchers, workers and employees in the training or research institutions, when being transferred to work at State enterprises attached to such institutions, shall be paid wages and other allowances corresponding to the business efficiency of the enterprises, while being at the same time, entitled to sign contracts for participation in training or research activities in such institutions, When necessary, the heads of the training or research institutions may withdraw such scientific researchers, teachers, workers and employees for research or training activities under the payrolls approved for such training or research institutions.

Article 11.- The heads of the training or research institutions shall have to direct their enterprises to operate in accordance with the assigned functions and tasks and shall be responsible to the heads of the agencies that decide the establishment of the enterprises for the observance of the State's law and policies by the enterprises and the operation efficiency thereof. The directors of the enterprises shall take responsibility before law, the heads of the agencies that decide the establishment of the enterprises and the heads of the training or research institutions for the entire operation of the enterprises, according to the responsibility assignment stipulated in the statutes on organization and operation of the enterprises.

Article 12.- If those State enterprises which have previously been established at the requests of training or research institutions, re-registered according to Decree No.388-HDBT of November 20, 1991 of the Council of Ministers promulgating the Regulation on the establishment and dissolution of State enterprises, then restructured according to Directive No.500-TTg of August 25, 1995 of the Prime Minister on the expeditious reorganization and restructure of State enterprises and consequently no longer attached to such training or research institutions, are now deemed really necessary to be re-attached to the training or research institutions, the ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government or the presidents of the People's Committees of the provinces and cities directly under the Central Government shall consider and decide, without going through any procedures for re-establishing the enterprises.

Article 13.- The Ministry of Education and Training shall have to coordinate with the Ministry of Science, Technology and Environment and the Government Commission for Organization and Personnel in defining the relationship between the training or research institutions and their attached State enterprises.

The Ministry of Finance shall have to stipulate the financial management regime to be applicable to State enterprises in the training or research institutions.

The Ministry of Planning and Investment shall have to consider the proposals of the ministries and localities, then select plans for the experimental establishment of State enterprises in training or research institutions with prospect of efficient operation, and at the same time oversee the operations of such enterprises after their establishment and report to the Prime Minister.

Article 14.- This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees of the provinces and cities directly under the Central Government and the concerned organizations shall have to implement this Decision.

Prime Minister

PHAN VAN KHAI